caroline: on review for a junk rating. attempt.d coup headed for a reality check. the ftse 100 could fall into a trap of by year end. the pokemon go with him on help push to the japanese firm's market cap. i welcome to cap down. ."- welcome to "countdown

i -- i'm in edwards. manus: and i'm manus cranny. anna: this looks to be a touch above estimates at the ebit level. the second quarter netted 312 million euros. this is a company we have to talk to about brexit. this is a business that operates in the u.k. what will they have to sell? they have said they will continue to invest in the u.k. in the immediate aftermath of the brexit vote. two of their competitors merged in the u.s. recently. we will be speaking with the asset manager at 7:15 u.k. time. manus: the swiss-based drugmaker

netted $5 billion, just ahead of the estimate of $12.2 billion. sales will be broadly in line with the prior years. they are driving unchanged for the rest of the year. the core earnings came in at $23 billion. they have a huge amount of generic competition coming through. you can see second quarter sales beat on the headline earnings. the guidance is broadly in line with last year. they delivered a solid second quarter, despite the risk on aspect. this is one of the main drugs for them, in terms of the generic competition. so, that is the state of play on novartis. equityt seems global a markets are frozen at the pre-br exit rate.

we have the turkish lira in there. a bit of movement in there. the central bank will meet later after the failed coup attempt. the drop in the lira seems to be dropping the rate of interest rate cuts. matt: the worst performing currency over the last five days. we have new macro rules in place there. the aussi-dollar, again, the rba keeping their options open. $45, this is where we start to see a little pressure on the marketplace in terms of the fiscal position of the middle east. anna: let's get to the bloomberg first word news now. after a salesorter coup attempt triggered a selloff in the lira and sovereign debt

the meaty expectation is for a cut. in an exclusive interview with bloomberg, the imf chief says a response by the policymakers will help. which is the currency of turkey, went down, but not by much. there was an orderly functioning of the markets after something that was massively disorderly. reporter: donald trump at the first night of his nominating wifension had his deliver a message of unity. in a rare speech, melania trump said her husband is tough one he needs to be, but also kind and fair. the prime minister has been reelected and his cabinet has been sworn in. he reshuffled his team after this month's narrow election

win, declined budget repairs the top priority. 00's bull run is heading for a reality check. it will end the year down 7%, according to the bank, which is the most bearish o surveyed by bloomberg. pistols and give way to harsher economic realities after the vote to leave the eu. four peoplenjured on a train in southern germany by being shot to death by police. the authorities say the assailant was a 17-year-old afghan, but a motive has not been established. global news 24 hours a day, powered by 2600 journalists in more than 120 countries around the world. you can find more stories on the bloomberg at top . you very much. the german train attack, we are joined by

caroline hyde in berlin. what do we know about the attack so far? caroline: we understand it was a 17-year-old afghani refugee. he traveled to germany as an unaccompanied minor and was living near where this attack occurred, in the south of germany at about 9:15 local time. it was a commuter train, said to have injured some four people. but there is no motive as yet known as to what was behind this attack, which he launched on and a knife.n axe anna: this came so soon after the nice attack. undoubtedly, it will heighten concerns around terrorism in germany. >> those concerns have been on the rise significantly. on july 12, there was a report put out by an insurance company,

ly showing that for the first time, the number one fear among the germans is terrorism. 73% of the respondents polled said they feared an attack. this polling was done between april and may. yet more english post the nice attack, which have been a key concern to those based in germany. there have been concerns building ever since the new year. of there have been a number assaults. police are blaming that on migrants coming into the country. no wonder therefore, there has been a rise in the alternative future for germany party. manus: caroline, thank you. let's get into the market movements. we have got asian stocks off of a three month high.

i love the softbank story in a love the pokemon story. -- story and i love the pokemon story. >> you have will be surprised. we do see very good moves coming up on the nikkei, up by .9% as the yen continues to waken. you have to remember, japan was closed yesterday when we saw that rally across the rest of asia. so, other stocks are seeing that six day rally. we have seen significant weakness coming through from china and hong kong, holding that rally and coming off of those three-month highs. weakness too in australia, but there has been support in new zealand come up .7%. that is on speculation that we could see another rate cut next month, new zealand doing what it boomo reign in the housing by increasing the amount you only for a deposit to purchase property there. what a big slum coming through from softbank.

-- what a big lum coming slump coming through from softbank. nintendo, continuing to rise on the pokemon story. it has now overtaken sony in terms of market cap. and mcdonald's japan also getting a boost, pokemon story. that is because the happy meals toy sales have increased. popokemon is not even in apan yet, but it is developing story. is going toiss go find some pokemon later here in the studio. bank is widelyl expected to slow the pace of interest rate cuts when it meets today. this comes after the failed coup to get a selloff in the currency and a sovereign debt.

manus: we are joined from istanbul. today we have a central bank decision and they want to use this as a message. we heard this from christine muchde, which is very business as usual, despite the political instability. how can they do this? >> look, they have already taken measures after the coup where they said, we are going to provide the market with the liquidity that it needs. this is a regular rate decision meeting. so, i think the decision, the reason why some economists might be reviewing their initial expectations that the central bank would continue the rate cut on the upper range of their interest-rate band, they did it three times in the last three months, 50 basis points each time. because of this coup, they might

want to slow it down a little bit and wait and he what happens with the current the, especially after the currency slump on friday. though they came back a little yesterday, it seems to be going down a little today. their message is that they still might cute. it might not be 50 basis points. toy might still go for a cut show that they are confident, but they could keep it at 25 basis points. anna: remind us about the rating story around turkey. moody's has put turkey on review for a downgrade. can the country hold onto any investment-grade ratings? >> right, it has two investment-grade ratings. if moody's does decide to put turkey there, that will have an impact on foreign investment in turkey, which is the big question.

foreign investment has been improving for the first five months. it was negative in the first five months of last year and was positive this year. junk downward rating to would really be there a damaging to turkey's prospects, which were looking up earlier this year. manus: riad, thank you very much. riad hamade there, the middle manager.t the world is doing more and more with political spikes, moments of real tension. that makes central banks' jobs so much hard or, given everything we are looking at. in terms of central-bank policy, are we going into another wave of cuts and stimulus? >> i think it would be unwise to do so, but i would not rule it out because of a moment, there are limited options on the table for many heavily indebted foreign government, where the

fiscal room to maneuver remains constrained. having said that, you do see a widespreadore narrative to the limits of monetary policy from key monetary policy makers as they eight knowledge -- as they biacknowledge that this does them no favors in the long run. who wants to be in the crucible testing of bomnd markets? we have seen a little bit of it in canada. do we start to see it in some of the major economies? principally, the eurozone, where draghi has been going on for more than 18 months. as he has watched his favorite level of inflation plummet back to the levels before in fact, when he started the constant easing process. anna: you mentioned we have this

core of people outlining the limits of monetary policy. one of those is mario draghi. he might be forced to do more, even if they themselves, see the limits. >> we have the ecb later in the week. the market did not expect any action, given the way corporate bond yields have headed since the corporate bond buying program for the ecb commends. -- the ecb commenced. they may have no choice, but to go lowe ror on rates. manus: the great debate is this. you have the political situation and the central banks. looking at the 10 year government bond yields in the united states, the brexit really dampened the demand for havens. we have seen this turnaround in yield. my question is, what is driving bond yield? is it the lack of belief in

inflation returning, or is of the global political spikes? simon: i think it is the former, the lack of expectations that inflation is coming back to seemingly meaningful targets. equilibrium for the interest rate is now mainly negative, but that is structural. much of that is due to an aging population, due to financial in a vision that has driven down spreads. if we try to chase nominal numbers, particularly on bond yields, we have missed the seismic structural shift that has happened, and has been happening for 20 years. it has just caught up with us because the nominal figures have turned from positive to negative. anna: morgan stanley said we could get a 10% treasury yield

by next year, even by bullish standards. that looks to be pretty bullish because they are expecting bonds to go higher if that yield comes down to 1%. they say products and policy will change that. will we see 1% in the u.s.? simon: i don't want to dismissed manus' political theory. we look at the u.s. political election, and also you look at the requirement in the eurozone to -- are they going to complete the monetary union? are they going to push through with the banking union? all the kind of elements to the story that are mired in political risk, because there is very little political support for the kind of things that are necessary.

anna: christine lagarde at the imf saying yesterday that the eu needs to do a better job of explaining the benefits of europe. manus: that is an argument that fell on deaf ears in the brexit debate. let's get you up to speed now with your day ahead. anna: parliament will convene for the first time since last month's general election. then we have ppi data from the run up to the june 23 eu referendum. manus: 30 minutes after that, it is the july germany zew survey. then, we get the second quarter earnings from goldman sachs 30 minutes later. and the turkish central bank will deliver their decision on rates. anna: up next, it is game on for the pokemon craze. rally, the pickachu next. this is bloomberg. ♪

manus: a little bit of breaking news for you. we have second-quarter earnings. net sales came in at 78.9 billion krona. when they talk about the marketplace, they see european truck market as being 290,000 units, pretty much in line with what we have seen previously. it is a miss on the sales level. some to get .9 and the market was looking for 79.2 billion kronas. -- it is a miss on the sales level. , and theion krona market was looking for something 9.2 billion krona. on with theg

transportation of heavy-duty goods around the west. some people like truck salesin the u.s. as being a real-time guidance. the second quarter truck intake 8%.l by in the u.s., it fell by 29%. anna: they seem to be upping their intake of truck units in china, which could be interesting. let's get to the bloomberg business flash this morning. here is rosalind chin. rosalind: japan has seen shares jump up as they started giving figures based on pokemon figurines. pokemon go is still available in japan, where the cartoon series was created. by u.s.vestigations authorities.

the company says that is cooperating with the justice department into the reporting of vehicle sales. the federal investigation follows similar lawsuits that challenge the company sales numbers. -- that challenged the company sales numbers. added less than 1.7 million new viewers globally, falling short of its 2 million estimate. in the u.s., is someone hundred 60,000 new viewers -- in the u.s., it saw 660,000 new viewers. second-quarter sales fell to million. thatigures are a sign the ceo is making some headway, h.

bankshares have plunged -- and softbank shares have plunged in tokyo. the shares dropped as much as 11.3% heading for the biggest single they decline since 2012. a sizable fall nin the u.s. yesterday. that is your bloomberg business flash. manus: thank you. nintendo's market value has pushed up over sony after pokemon go fueled a rally lasting more than a week. anna: nintendo's value has jumped over $39 billion, extending a run that has seen its share price more than double. on friday, the company set a record for the most shares ever traded in japan. the french chief economist has

put his phone down. he was out monster hunting. but he is now here on set. this is something that seems to be taking over the web. >> somebody walking around the station in london, looking only at their phone with no comprehension of what is going on. it is a phenomenon. lastumber of tweets week on pokemon go has exceeded the number of tweets on brexit. it is a phenomenon. manus: how do you tie this back to markets? kind of boring, i know. leave the boring parts to me. the biggest daily turnover in stock ever on the tokyo stock worthge, 476 billion yen of shares was traded. this gives you the sense of the

phenomenon. i know this is a jump now, come with me. i am going to jump the river. this is technology literally inventing new demand. this is about the revolution that a lot of central bank governors are struggling with. simon: and this feels like a real paradigm shift in the way that when i went back to university, i had never thing facebook. [laughter] simon: it is a little bit like that movement. something needs to download it and understand what it is all about. parentsr and grandparents start asking about it, you know it has extended wider than the core technology practitioners. the extension is much wider and it happened with a very short half-life. anna: helicopter money in japan, simon? simon: you could argue it is already happening, really.

money is moving into the corporate sector. but i don't think we will use helicopter money this year. manus: up next, the second quarter numbers after the firm dismissed reports that they inflated their sales targets. this is bloomberg. ♪

e anna: welcome back.

this is "countdown." in parisondon and 7:30 and berlin. ericsson competes with the likes of nokia. they say the are starting significant actions to cut costs. sales number is coming up at 51 point billion krona. that is a touch below the estimate. in terms of any net numbers coming through, we have cooperating income -- so, the operating income figure. billion krona,e

below the estimate of 4.1 billion krona. they are taking further actions, initiating cost-cutting and targeting. --tomers have come off a they have come off a period of heavy investment. this is something their rivals are having to deal with. customers are now spending a little bit less. this is a challenging revenue environment. what would they do with operating expenditure, that is a big focus for analysts. manus: the ceo will join me on "the pulse." the interview is set for 10:45 u.k. time. actually, that will be in "surveillance." anna: this was a company that was forced to reject the report

from swedish media that they were inflating sales. manus: but they denied that. let's get to the latest edition. it is daybreak. let's take a look at some of the stories that are making the front addition today. there you go, anna. it is all about this particular country, turkey. what happens next? what we have seen overnight is --moody'sy has been review.ey on will they cut rates by 50 basis points? christine lagarde at the imf said yesterday in a bloomberg interview the actions by policymakers helped carve the financial markets so far. so, the central bank in turkey is very much the number one focus. will the central bank the

pressurized? bet i -- will the central bank pressurized? anna: the risk rally is on pause in asia. markets, japanese were closed yesterday. they are actually stronger, the nikkei up by 1.3%. compared to japan, we have a much weaker picture across the asian equities session. the s&p closed at a record high. asian stocks, fairly flat then as they stop their six day winning streak there, or at hold.what iput it on manus: in the u.k., we have our inflation numbers due as well. this is the first sort of moment that the bank of england will be able to look under the hood of the u.k. economy and see what actually, is the data that has the potential for a rate cut?

anna: this is quite pre-brexit, isn't it? manus: everybody is debating whether we are slowing down and getting ready for a recession. and you are right, it is just at the end of the second quarter. anna: the weakness and th in the pound and the oil price of putting pressure on the pound. meanwhile, asian stocks are retreating, as we have been discussing. caroline hyde now joins us with a look at the market. caroline: thank you very much. good morning to you. and indeed, i wanted to take you straight away to the world currency rank. this shows the picture of what is happening in investors' minds this morning. checkup out the fact we have money moving into the havens. that is the yen, and we are up .25%. the yen is the only key major currency that is driving higher today. on the flipside, look a much of

the new zealand dollar is humbling at the moment. the aussi dollar is drowning, down .9%. the reason? the ongoing speculation that both of these central banks could inject further stimulus, could be cutting rates still further. australia in particular, concerns about the job market. let's look at new zealand a little more because it is the worst performing currency in the past five days. blueline.ently in the and the white line is the new zealand dollar versus the u.s. dollar. they are trying to curb back on the housing market. you need a 40% deposit now if you want to purchase a house in new zealand. does that open the door for the central bank to cut rates further? reasons they could hold back on cutting rates is

the housing bubble, but now it looks like they are clearing that road for themselves and we could see a rate cut as soon as august. is what is tugging down on stocks in particular this morning. we can see the oil market slumping. have a little luck. i-- have a little look. in the white, i have your brent contracts and in the blue, i have your wti. y data,u.s. inventor h stock piles due out. we cannot break above that $50 mark over the course of the past few days. back to you guys in the studio. manus: caroline hyde that was the latest on the markets. let's turn to an area of the world that knows a thing or two about oil. nchor joinsarkets' achor

us now with the chart of the hour. so, what is happening with these treasury holdings? we got a little more disclosure than we normally do, but there is a shift. >> absolutely, manus. member, it has been since may that we are getting that data in response to a freedom of information request filed by bloomberg news. we put this up on a chart for you that you can easily pull up on your bloomberg. it is the numbers for may, confirming what has been a downtrendd for saudi $9.3 billion, by 8.2%. and at the end of the day, the is still only 20% of foreign reserves, but it shows you that saudi arabia continues to be

under pressure and a paradigm shift is underway. a structural change in light of the moderation in oil prices any shortfall in the budget, which is the biggest in 25 years. and of course, in anticipation as well of tapping foreign markets by september. anna: thank you very much. let's talk about all things european, simon. ecb meetingd the e this week. it seems the consensus from economists surveyed is that nothing will change. >> we have not enough information on the transmission from the key changers that came earlier in the year to the corporate debt market. we have seen yields go lower,

but we have not seen yet the holy grail from mario draghi, which is demand. at the moment, he is pushing hard on providing supply on very favorable terms, but demand factors have not come through. we have been talking all morning about oil being back at $45 a barrel. that should be a boone to growth in europe, but of course, they really struggled with strengthening in the euro as geopolitical risks start to spike. anna: we know a little bit more about what they are buying now, don't we? manus: and the size of these bonds is incredible. the borrowing rate for corporate is .77%. they are buying utilities, communications.

the top three countries, germany, france, and italy. money.s a huge raft of will this ever really transmit to the real economy? rates ofrrowing .77%, is it that politics trumps ego? simon: politics does trump of the moment. if this goes into rivers, and we have seen bil -- if this goes into reverse, and we have seen bill gross and others, warn of this. this is a very brave situation to be in, given where valuations are right now. i think the size of the ecb balance sheet is interesting,

about 3.2 trillion euros. how much higher does it go? we have been moving a lot of corporate debt space into negative rates. balancehe size of their sheet relative to the bank of japan, relative to the qe, it is still behind those two. simon: you are talking 27% to 28% of eurozone gdp. is true, youat also have to look at where the demand factors are going on in the european economy, which means that when the european central bank leaves the table, what is the result in terms of lending spreads around europe? that is the great uncertainty, which you must add in to

political risk and market risk now. anna: perhaps we will get a bit of clarity on how weak the economy was before the brexit vote, that we are waiting on many more clues. looking at the fiscal picture in the u.k., what is your besa se case for spending? simon: the previous chancellor therge osborne bequeathed balanced budget of 2020. i think that leaves it open for a stimulative budget in november. i think we have seen the u.k.ity amongst the new administration is confidence at all costs, basically is the phrase. you saw yesterday, arm being bought by softbank. industryradicted some

strategies. anna: some of our gadfly economists commenting on that subject. simon french, thank you for spending your time with us this morning. manus: we have the earnings numbers from ericsson. ceo sothe ericsson pressured by investors? this missed what the markets actually expected. he is going to be under more pressure today, is that the? -- he is going to be under more pressure today, isn't he? >> yes, i think he is. he is been with the company for six and a half years now. during that time, he has not delivered much of a share price gain at all. there has been rumblings over

the last, shall we say year. essentially, he is under pressure to deliver better, more cost cuts to the company in what is a very competitive market. anna: can we are hearing from the company about costs and what they are going to do on the cost front. is this going to be what investors want the company to do? certainly, a lot of investors were hoping for some additional measures. it was a little unclear whether he was going to deliver this quarter. as we have just seen, he has promised to increase the pace of e thecuts and to reduc operating expenses of the company into next year. i don't know whether it is enough. time will tell and certainly, the market will let us know in about an hour. manus: ok, kim, we have got the ceo on a litter bit later. i will be speaking to the ceo,

hans vestberg, at 9:45. fixedgoldman sachs' income business could be in for a struggle as rivals pick up the pace. this is bloomberg. ♪

anna: welcome back. this is "countdown." if you are in the city that never sleeps, 1:48 in the morning. the s&p closed at a record high yesterday. managing director christine lagarde said the exit from the eu will take time. >> there has been significant progress in the macroeconomic situation of great britain over the last five years.

we've seen a clearly move from a 10% fiscal deficit to more than half that now. my recommendation would be to really, reduce the level of uncertainty, identify clearly what the goals are, identify the timeline, and as philip hammond said, understand that it will take time. but it will require understanding on both sides in order to eliminate the trade uncertainty, the regulatory uncertainty, the past four uncertainty. -- the passport uncertainty. ange of issuesle r that must be addressed, which have brought the european countries together. the united kingdom clearly indicated its intention to withdraw. clarity of intent, rapid execution, identification of both the goal and the timeline

would be helpful. tom: are you pleased with what you have seen from the european leaders so far? you go in a few days to g-20 meetings. are you pleased with the message from chancellor merkel? christine lagarde: for the moment, they have not deliberately so, decided to lay out the terms and the space and the maneuvering that they all want to offer, or expect from their partner. and i understand that because there must be third in the about the timeline. -- i understand that because there must the certainty about the timeline. the article 50 will open a limited period of time. i can see why they would not want to put their cards on the table yet. but if on the other side, the netted kingdom moves in the direction -- the united kingdom moves in the direction of

clarity of purpose, the europeans should respond. my real hope as a european myself, is that the european leaders will find the strength and determination to actually bring about some of those structural reforms, changes, that will deliver value to the europeans that will demonstrate it is worth being together. it is the future. manus: imf chief christine lagarde, sitting down in an exclusive interview with tom keene. we will have more on the exclusive one-on-one throughout the day on bloomberg. anna: bond trading revenue increased more than analysts had expected. manus: goldman sachs is next to report. we now have a preview. when we look at this, it has been quite a tough reporting season. what are we expecting from goldman sachs today? theire it is about

customer complexion, versus everything else? >> with those three banks use the an increase over fixed income trading. they gained from the volatility around rbexit. -- around brexit. so, a lot of people will be looking to see if goldman sachs will be able to gain in the same way. anna: what has the common theme been for the reporting season? theme is thatmon this was a big ruling on the front -- a bit grueling on the front foot. everybody is watching to see if these guys can come back with some sort of a rebound. manus: let's bring in david stubbs from j.p. morgan asset management. has alreadytion undergone this. net income in american banks is expected to drop in five out of

six by 18%. the first quarter was about cost-cutting and the second quarter is about revenue demolition. it is a tough time to be a bank anywhere, isn't it? >> absolutely. interest rates are low. curves are flat. you have to look elsewhere to generate revenue. one thing i like with some of the biggest banks in the u.s., including us, but also wells fargo, the core growth rate has accelerated. manus: there has been a huge uplift in that, hasn't there? >> exactly. yes, you might have a few good months surrounding the brexit, but the future of the banks will be about cost control.

i can tell you this is the ongoing focus inside major banks, including us. l, briefly, where does this leave europeans then? >> they are in a their different shape than u.s. banks. so, i think people are looking for some very different things. e,utsche bank and credit suiss these are banks that have gone through structuring overhauls. so, i think people will be looking to see economic progress on those overhauls. anna: we will look for details on that as well. bloomberg news, donal griffin. what is your strategy at the moment as we see these global equity markets stalling at these pre-brexit levels? are you looking for another leg up:? >> we are slightly less optimistic than we have been in the past few years. we do think the upside is capped

by a fairly tepid growth environment. for me, the bond yields are the outliers here. there are several hundred billion, too few bonds in the world this year after the plans for purchases by central banks. i think it will be a technically driven rally. that of course, means earnings have a lower discount apply to future earnings. and of course, this moves people indirectly. yieldsar wher e the bond could go from here. so, we are quite cautious on the government bonds' ability to stabilize a portfolio in this environment. do we look for extra yield and credit, given that risk? manus: everybody is trying to get used to a post-brexit world. hsbc saying, u.k. stocks are in

for a big hit, mark carney can't stop this. do you concur with that? does this perpetuate? you think we have seen the most on the run on sterling done? >> i think most of it because it is such a dramatic move, but i think it will still go lower from here. y overweight with large caps. ftse 100, 75% of its revenue from outside the u.k. i think anyone watching this channel knows that. the mid caps are much more of a domestic play. i think everyone is holding their breath to look at some of the data coming through. rates will probably go down to zero at some point in short order.

and then, we have quantitive easing. donal griffin stays with us. anna: up next, turkey's central-bank delivers their decision. this is bloomberg. ♪

manus: on review for a junk rating. moody's -- president at a one sorted that's president everyone boarded -- president erdogan ft. hood -- by the year end. game on for nintendo. pokemon go phenomenon has helped .o push the cap more cost cuts for ericsson after missing estimates for a second quarter, we speak to the ceo later today on bloomberg. ♪

manus: you are welcome to "countdown." london.00 here in let's talk about where the global equity markets are headed. the futures stalling prebudget levels. the s&p closed at an -- at a record high. asia, fairly flat. manus: if you think where the money is flowing, there are a couple of big things driving the market. desk yesterday rallied for s&p by the sixth session -- rally for five of the six session. moody's put turkey on a review to downgrade after the attempted queue -- attempted coup. goldman sachs, you're going to recap 325 over six months. aussie dollar, central-bank

stories. the rba keeps the options open. they reiterated their concerned about the currency and weak inflation. the new zealand dollar, down 40%. that leaves the door open. anna: both dollars increased speculation that interest -- that central banks could cut interest rates. we got the oil price in at $45. u.s. equities expected to show stockpiles dropping. with that morgan stanley talking about 10 year u.s. treasury yield could go to 1% of the third quarter of next year. just a reminder of the negative yields in germany and japan. manus: you look at the board and you look at you have a return of 1.5%, that is almost a high-yield return. u.s.ould've thought that

treasury bond yields could appeal that much. >> 30 central bank will slow the pace of interest rates. that is according to economists surveyed by bloomberg after a failed coup attempt triggered a selloff in the europe -- selloff in the lira and debt. in an interview with bloomberg, sayshief christine lagarde the response by turkey ministers help kong investors here it does help calm investors. -- helped calm investors. said it will double its cost-cutting plan after posting second-quarter sales that missed analyst estimates. sales fell 11%. the company said it will reduce -- and develop spending and curb

investments in wireless gear. will be speaking to ericsson's ceo. you can see that interview here. speech, donaldc trump's speech says her husband is tough when he has to be but also kind and fair. she appears to have taken inspiration from a force, michelle obama and. -- michelle obama. her words seem to reflect the same words of the first lady during the 2008 -- turnbull reshuffled his team after this much -- this months narrow win. 100 is headed for a reality check according to strategists at hbc -- at hsbc.

the most bearish of seven surveyed by bloomberg. the promise of central-bank stimulus will give way to harsher economic realities after voters decided to leave the eu. nintendo's market value has pushed past sony after the mungo fueled a rally -- after you mongo fueled a rally -- after pokemon go fueled a rally. on friday, the company set a record on the most shares traded daily in japan. global news, 24 hours a day, powered by 2600 journalists in more than 120 countries. manus: let's get to juliette saly. what has caught your eye? not a chance.

there has been a big pop coming through on nintendo's share price. that is as we continue to see this yen boost -- japan was closed yesterday when other asian markets rallied. apart from that pop in japan, where seen quite a bit of weakness coming through in shanghai here in hong kong and the chinese stocks listed in hong kong snapping the longest winning streak that we have seen it some months. the first fall in nine sessions and australia. a little bit of weakness coming through in the energy sector. it has been japan lifting the overall market. -- lifting its market cap above sony, a 14% gain. it has risen wanted to percent since pokemon go. go.isen 100% since pokemon

softbank shares coming under pressure. we saw the effect of arm holdings, the takeover deal, a big rise on one this session. investors in japan appear to think it has taken on too much debt. currencies -- particularly -- which had a big fall. increased thes amount of deposit you have to have if you want to buy a property to 40%. quite a big drop coming through in the kiwi. the aussie dollar has come under pressure today. 75.18. a bit of a mixed picture in terms of equities today. manus and anna? anna: thank you very much, juliette saly in hong kong. news out of the state department in connection with turkey.

reviewing their advice to travelers, advising u.s. reconsider travel to the julyd the light of 2016 coup attempt. this is going to have a big impact on the tourism industry. manus: we're waiting for the 28. of july on your terminal, you can find what is going on and this is the trend in terms of turkey tourism. it was already on the decline. of flow on data on where people are going around the world. for: tourism accounts turkey's desk accounts for 6.2% of turkey's -- accounts were 6.2% of turkey's -- ahmadi -- will

they go for a rate cut? --l anyone -- will anyone -- after this attempted coup. : everything is normal. turkey is open for business. the central bank did take some measures which they reassured markets that they will make the liquidity. they are available. in terms of the rate decision, before the coup, the median forecast of economists we surveyed was for 50 basis point cut in the upper levels of the range. and it's just rate range. we decided to do another survey after the coup and's and that median has come down 25 basis points.

it will be a smaller cut in that upper-level. although the opinions of monday economists from no change to some sticking to their 50 basis points. the -- for aus of downgrade. they have one investment grade, don't they? riad: they have one investing grade from moody's. movies saying they are going to take a look at that. if they lower them to junk, there could be a major problem for turkeys efforts to bring in foreign investment which has done well in the first five months of this year. it was positive compared to negative, to an outflow fund from the previous year. , thedy with a coup political risk factor is something that is weighing heavily on investors minds. people already being -- if

moody's goes that way, it is bad news for foreign investment into turkey which is so crucial for the economy. manus: that is the key. great job. our managing editor riyadh david, thank you for joining us. decline.urism in my question is this, how do you to consider terrorism, because it is now a much more present precedent issue, cross market on a regular basis? distinct isto between the effects of the individual incidents and what could be a curative effect and terms of change of policy. if incidents of the scale of a we've seen recently, we expect barriers to put -- to be put up.

costs ofd add to the doing business. furthermore, you see the impact on the macroeconomic level. crisis, the migrant government spending in europe rising 2% year on year after years of decline. of course, directly, one of the key things you can do is invest in defense stocks. you can invest in companies which will playoff the more militarized environment for the western economies if that's where we are going. anna: we haven't talked about how the exit vote and the terrorism story placed to the right of european politics. donald trump has been linking the brexit vote and what he saw as something revolutionary taking place in europe, and his policy in the united states. when you look at what happens --

what lies ahead for united states, how do you prepare for that type of investment environment? david: the forces that are driving this -- you have seen the skates of -- you have seen decades of middle-class income stagnation. when we look at the u.s. election specifically, everyone knows where that's what the election is going to be about and who it is going to be between good coming out of it, afterwards,, we see the most likely outcome being deadlock. -- being gridlock. ,f we get a trump presidency -- upfront taxal cut and -- the stock market will love that quite a lot. manus: the s&p 500 against him .si -- against the msci

chris, they down closed -- we've got 90 companies reporting. as an trump is in the white house, it flies like a rocket band, does it? if he is able to pass large amounts of legislation, -- he is talked very little about specific policies. it revolves around a very large tax cut, making it -- making the text system -- making the tax system much more flat. it leads to trade tensions, etc.. you can see the external stocks. anna: it is possible that the upside in your mind around investors minds around some of the republican policies that he may introduce, that upside will outweigh concerns about the rise

of unpopular politics. he would be the poster child for it. david: that is our best guess. we're dealing with a slippery character on what he is asked to going to do and his actual positions. he will surround himself with experts and etc. we know what we are going to get from hillary. more poorly we know that she probably will not have the house . she will not be a to pass a huge amount of legislation. anna: surround himself with experts. we heard that u.k. has had enough of experts. david, thank you so much for joining us. in on thats focus political story in the united states. donald trump first night of his convention by having his wife -- marked by dissent. anna: millennia trump made a

case for husband, as a man, father and a president. >> i can tell you with certainty that my husband has been concerned about our country for as long as i have known him. with all of my heart, i know he will make a great and lasting difference. deepd has a great and determination. and it never give up attitude. tello's joinst us. good to see you and many are may have gleaned the inspiration for speech, channeling michelle obama. margaret: if you were to go back and put side michelle obama's remarks from 2008 from this very sort of convention eight years

ago, compared to what milani a -- the realonight question is whether that issue of the similarity is going to -- the question of donald trump has made a point to save everything about president obama has been a disaster yet his wife is seeking to emulate michelle obama has to say. i would like to reach you a statement now from the donald trump campaign. this is from the scenic indications advisor recently, after the twitter universe exploded over these comparisons between the two speeches. he said in writing her beautiful speech, our team of writers took notes on her life inspirations. in some instances, they included fragments that reflected her own thinking, one is immigrant experience in love for america shone through in her speech which made it such a success. neither confirming nor denying that inspiration and how close

it is but certainly this will be one of the unintended messages that comes out of tonight's convention. anna: not referencing that at all. clintones as hillary calls him a "most dangerous candidate" in a television interview. how did that go down in the room behind you? margaret: she gave this interview to charlie rose .or cbs networks hillary clinton makes the point of saying and all of u.s. attitudedonald trump's toward nuclear weapons, dictators, foreign policies and torture, all conspire to make them dangerous. this is something that emerged in the midst of this very big opening convention night. something that many of the republicans have not had a chance to absorb yet. we will expect in the hours to come, kind of every turn of

rhetorical fire from the trump campaign. really clinton not wanting to let him have his opening night to himself. medical never a dome moment over the next five evenings. -- manus: never a dell moment over the next five evenings. ahead of estimates for another quarter. we are going to anticipate the company's ceo. this is bloomberg here it -- bloomberg. ♪

anna: welcome back. this is "countdown." let's get the bloomberg business flash adheres juliette saly. .uliette: anna, thank you nintendo's market value has pushed past sony after a pokemon go rally lasted more than a week. nintendo's -- has jumped above $39 billion.

the share price more than doubled as the app became a viral phenomenon. the company set a record for the most shares traded in a daily in japan. has seen itspan shares jumped after it started giving weight figurines by pokemon characters such as chu. nintendo's pokemon go which is sparked a worldwide frenzy still isn't -- still is available in japan. novartis has seen its earnings decline to 3%. profits fell, excluding some items lower than some analysts estimates. that is as the company grapples with tumbling cells. that's tumbling sales. -- tumbling sales. that is your bloomberg business flash anna and manus. manus: thank you very much.

-- announce profits ahead of estimates. paints --e of durex let's get straight to the ceo. . fifth straight quarter sales coming under a bit of pressure. my question to you is can you sustain this level of beat? isn't about taking more cost out of the business? >> indeed we had a good set of results, set a record for oxo -- anna: you remain committed to the u.k. post the

brexit vote on the 23rd of june. it will be about a good mental investment. can you say you'll make just as much investment in the u.k. as you would've done if there wasn't a vote for brexit? ton: we are building a new factory could most of our business in the u.k. is a very much for the u.k.. u.k.ll, we are just in the could we are strong in terms of our brand and position. manus: committed to the u.k., that is going to be music to the new prime minister's ears. let's talk about currency exposure. there has been a significant drop in the pound, more -- down more than 10%. what impact is that having on your strategies? are you adding to hedges? where are you in the process? ton: our u.k. business is

significant but it has two parts. one is our decorative paint business. we manufacture in a place where we sell. that means the business has a natural hedge. the impact would be the translation affect into euros. the second business has a significant export component, the business of performance coatings which supplies into the marinas and protective coatings. seen sharese have of basketball announcing their intentions to join. does that increase the competition you feel? --: at the moment, we don't sherman williams very often. they are very strong in the u.s. when it comes to decorative paints. we are very strong and the rest of the world.

moment, we think short-term, there will not be any significant changes in the present environment. -- participating -- manus: ton, we have to leave it there. on the move is next. ♪

welcome to "on the move." 8:30 in berlin and we're accounting you down to the european open. i am guy johnson alongside airline hide this is what we are watching. theresa may prepares her first cabinet meeting. the case biggest banker says the deposit for equities comes with a big hangover. we speak to just be see reality check for u.k. stocks. midis reviews turkey point -- movies reviews turkey for downgrade. this is a bank meeting today.